Business Transformation Strategy

Global Retail Transformation

Challenge

Our client, a retail trading company, was facing declining revenues, an increasing cost base, and was struggling to differentiate itself in an increasingly competitive market. The businesses had ambitious revenue and customer growth targets. It was looking for support to review its strategic ambition, redesign its business model and ensure its operating model was set up to support scaling, while also retaining adequate levels of control. This required an end-to-end enterprise-wide programme to transform the client into a data-driven and customer-centric business.

Approach

Our team developed a complex multi-year transformation program, leveraging the expertise of an integrated, cross-functional delivery team with specialists from Strategy, Operational & Regulatory Risk, Technology, Data, People & Change, Finance Transformation and Tax.

We supported the client to articulate a clear strategic ambition and designed a differentiated, customer-centric business model. Tailored to target future customer types, this focussed on ‘making customers better traders’.

The data-driven model enabled hyper-personalisation of the customer journey, significantly improving the experience and the relevance of the value proposition, while a scalable and agile technology architecture was implemented to simplify the historic monolithic, technology system.

Our team worked with the client to design and implement a single global operating model to support the new business model, while addressing gaps in governance to meet regulatory obligations.

At the same time, we improved margins through a sharper focus on the cost-base and closer alignment to an agile business approach.

Benefits

We aligned the client leadership team around one clear strategy, enabling them to focus on driving growth, and designed a market-leading and differentiated value proposition.

We supported the client to develop and launch a proprietary trading platform with a core data infrastructure. In addition, we developed a detailed proposition roadmap for the next three years to enable the continued development of innovative products that build competitive advantage.

The client also benefited from a refined cost base and a redesigned operating model that eliminated functional siloes and aligned business goals at a global level.

Global Manufacturing Organisation Transformation

Challenge

Our client, a global manufacturing organisation, wanted to increase capacity to meet the growing needs of customers and create headroom for investment.

It asked for our support to deliver an enterprise-wide transformation across a core area of its business. Our main areas of focus were the design and implement a leaner, more efficient operating model that was better aligned to its future business model and long-term strategy. As part of this, we needed to deliver a cultural and behavioural change programme to deliver sustained change. In addition, we identified value opportunities and delivered them through targeted improvement initiatives to unlock value and capacity.

Approach

We worked closely with the client to develop and implement an enterprise-wide strategy with significant value opportunities, delivered through a re-designed operating model. Key activities included developing a clear view on the capabilities required to deliver the strategy for the next 10 years, including the establishment of a Transformation Management Office (TMO) and instilling a continuous improvement mindset. This included leadership coaching and change and engagement support to manage the initial change, as well as preparing employees for future transition states.

We successfully implemented the new operating model, which included establishing new business units, optimising the organisational design, planning for the rebalancing of spans and layers among executive roles, and driving integration across the model framework.

In addition, we produced a proof of concept for a service design method / customer-centric way of working, and we planned and executed process development, capability enhancements and delivery of key toolsets in digital, data, project management, strategic procurement and warehousing and logistics.

Benefits

We helped the client transform its business and embed a continuous improvement culture. Key achievements included:

• Identifying a significant upside portfolio of value opportunities enabling capacity headroom release in key functions and investment for targeted growth in EBIT and new products and services.
• Embedding an enterprise-first mindset and governance forums with a set of leadership behaviours to deliver it, through KPMG coaching.
• Realigning the operating model with the existing and new business models for new projects and services – supporting enduring change and enabling new value opportunities.
• Delivering a ‘data led’ and ‘digital first’ transformation, underpinned with behavioural and capability change.
• Embedding sustainable change for the long-term and building the change capability. This included the training of client resource to enable self-delivery of future transformation activity.

Consumer Products

Client challenge

Our client is a large (£30bn+ revenue) global consumer products organisation.

Under a new CEO and after multiple changes to the executive leadership team, the organisation had developed a new strategy. But delivering the strategy required significant changes to the existing operating model.

Our approach

We partnered with the client, working in joint client-KPMG teams to cover the full value chain, including sales and marketing, supply chain and enabling functions across the globe.

Working back from the new strategy, we performed an initial outside-in opportunity assessment to identify potential changes and associated value.
We worked with leadership to prioritise and sequence changes, enabling detailed operating model design and implementation across the organisation.

Benefits for client

We helped the client transform its business and implement its new strategy. Key benefits included:

• Aligning executive leadership team on new operating model, clarifying roles and accountabilities across the organisation.
• Embedding new organisation and skills required to drive increased consumer focus via a new global customer organisation.
• Redesigning the approach and associated structure to next generation products.
• Simplifying the organisation by introducing consistent market archetypes to drive efficiency, transparency and enable matrix working as the organisation moved from a federated to a globally connected organisation.

• Developing detailed designs, including process, organisation, technology and KPIs, across the organisation.
• Setting up implementation approach and supported delivery of the changes, including associated change management.
• Delivering approximately £150m of efficiency savings per year.